Index-linked milk pricing scheme - Glanbia

WexTK

Hi all,

just looking to gauge impressions on the Glanbia Index-Linked milk pricing scheme.... as someone considering entering it from 2014-17 I was just looking for feedback/advice from others as to their opinions on it?

regards WexTK

atlantic mist

Dont think we will be entering fixed scheme for this scheme, do like the idea

Market beat previous two gii indexed scheme and i think market will beat new scheme too but think this one may be closer than previous two, fonterra have announced price for coming year and while it is a decrease in price.

We are market takers for price (unless we can change and become price setters like fonterra) so hard to enter a scheme where previous two have under performed in comparison to market prices, i thought gii would have managed to set indexed scheme for at least one of the two at a higher price than the market prevailed which would encourage lads to enter scheme as you win some you loose some, instead the traders set/assumed the price below market prices so anyone who entered scheme ended up financially worse that there counterparts outside scheme

CSO figures being used, i always wonder how many lads send in these forms on time for publication of the cso results and how accurate results are

Would be nice to have a fixed price scheme for purchases to accompany milk price scheme instead of linked to CSO, would it not be beneficial for glanbia to know how much concentrates they would sell and the price it would be sold at for the next three years.

milkprofit

Taken from fixed price booklet
notional margin for average producer 6 c /lt= 24 000e